With a large number of shares being sold by shareholders and which was kept locked for so long, Twitter fell by almost 11 percent.
Unlike Facebook which spiked by 12 percent when almost 800 million shares of theirs was unlocked, Twitter dropped to a record low of $34 per share while hovering around the $34.40 mark.
If that’s not enough, the volume of trading for Twitter alone is a huge 65 million shares when the usual amount is about 13 million in number.
Based on stats provided by Google Finance, Twitter has 569 million shares outstanding – the figure that doesn’t include un-vested RSUs or un-exercised options either. That said, not only did an early investor as well as Twitter founders decide to not sell their shares, almost a tiny amount of th 469 million shares that were unlocked today were involved in trading.
And while their current share value is a bit higher than the value at which they were first prized (about $26), the company went as far as topping $74 after being valued at $45 per share at first only until user growth became an issue.
Ever since its debut earnings were released, the company’s shares have dropped yet with today’s events, this loss in double-digits is probably the worst.
What is also apparent is what the company expected to not happen did and which included insiders cashing in on these unlocked shares which resulted in the stock crashing.
That said, Alex Wilhelm stated that with only a 9% drop in earnings this time, it was a 50% improvement from the 18% drop the last time around.